SHF Holdings, Inc. (NASDAQ:SHFS), a finance services provider, has been granted an additional 180 days by The Nasdaq Stock Market LLC to meet the minimum bid price requirement for continued listing. The company, formerly known as Northern Lights Acquisition Corp., has until March 31, 2025, to achieve a minimum bid price of $1.00 per share, as required by Nasdaq Marketplace Rule 5550(a)(2).
The company, headquartered in Golden, Colorado, was notified on October 3, 2024, that it was eligible for the extension based on meeting all other applicable requirements for initial listing on The Nasdaq Capital Market, except for the bid price. SHF Holdings has indicated its intention to cure the deficiency, potentially by executing a reverse stock split if necessary.
This development follows an earlier notice received on April 8, 2024, when SHF Holdings was informed that its stock had not maintained the required minimum closing bid price over the previous 30 business days. To regain compliance, the company's stock must close at $1.00 or higher for at least 10 consecutive business days before the March 31, 2025 deadline.
If SHF Holdings fails to meet the Minimum Bid Price Requirement within this period, the company's stock may be delisted from The Nasdaq Capital Market. However, the company has the right to appeal any delisting decision to a Nasdaq hearings panel.
The company's management is actively monitoring the stock's closing bid price and considering options to resolve the deficiency. This may include a reverse stock split, which, if approved, must be completed at least 10 business days before the end of the additional compliance period.
In other recent news, Safe Harbor Financial has reported significant changes in its executive compensation structure and notable Q2 2024 financial results. The company extended contracts for three key executives, including Sundie Seefried, Dan Roda, and Tyler Beuerlein, with a revamped compensation structure expected to save the company $350,000. The changes aim to align pay with revenue performance and foster growth.
In terms of financial performance, Safe Harbor Financial reported substantial increases in net income and gross profit for Q2 2024, alongside a remarkable reduction in operating expenses by 84% compared to the same period last year. However, total revenue for the quarter decreased by 12% from the prior year to $4 million. The company successfully exited a defaulted loan, recovering the full principal and accrued interest.
Looking ahead, Safe Harbor Financial anticipates positive contributions from its expanded lending platform and potential regulatory changes in the cannabis sector. The company projects full-year 2024 revenue to be between $17 million and $18 million, with adjusted EBITDA ranging from $3.75 million to $4.25 million.
InvestingPro Insights
Recent data from InvestingPro sheds light on SHF Holdings' financial position as it navigates the challenge of meeting Nasdaq's minimum bid price requirement. The company's market capitalization stands at $27.95 million, with a price-to-book ratio of 0.71, suggesting the stock may be undervalued relative to its book value. This could be particularly relevant as the company considers strategies to boost its share price.
InvestingPro Tips highlight that SHF Holdings is trading near its 52-week low and has experienced significant price declines over various timeframes. The stock's 6-month total return of -39.96% and year-to-date return of -64.49% underscore the urgency of the company's need to address its share price issues. These trends align with the article's discussion of the company's struggle to meet the $1.00 minimum bid price.
Despite these challenges, InvestingPro Tips also indicate that net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook on profitability could be a factor in the company's efforts to improve investor confidence and potentially influence its stock price.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for SHF Holdings, providing a deeper understanding of the company's financial health and market position.
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